Unit specific effects are often used to estimate non-spatial efficiency. We extend such estimators to the case where there is spatial autoregressive dependence and introduce the concept of spillover efficiency. Intuitively, we present an approach to benchmark how successful units are at exporting and importing productive performance to and from other units.

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This is the accepted manuscript version of the paper. The final published version can be found at: http://dx.doi.org/10.1016/j.econlet.2014.01.037